I am facing a repo of a mobile home,the company says they will sell the trailer & of course I am still in debt for what will be left after sale.. the rep told me since they know I can't pay that either, that they will send a 1099 form to IRS showing whatever I still owe as earned income?? and I will prob owe taxes on @ 20,000 they fig they can only get @ 12.000 for a 33.000 debt.how can they report a debt as earned income... I can't pay taxes now.. dont know how id pay extra tax anyone know anything about this kind of tax stuff... thanks... angelmae

That is the way it works, the amount of the bad debt is reported.
I don't understand it either ( except that it is a law that they can) but I agree I have never thought it was right. But if you read here on this site long enough you see people who it happens to almost every week

Have you considered bankruptcy at this point?

I've heard it cost so much to file for bankruptcy... anyone know of free advice or help pro bono

I heard from someone on this board that filing a Chapter 13 bankruptcy costs $200 (plus any associated lawyer fees, but if you do the leg work yourself, perhaps you don't need a lawyer)

You can also hire a para legal for about 300 or so to merely fill in the forms. The only trouble is that if you have some non normal people you owe, they can file all sorts of motions, and counter motions, which you will not understand.

You can buy the forms online, or at most local office supply stores.

The next thing about this that has bothered me all day, why was it dismissed, I just hardly ever see cases dismissed unless there was some false info, or the fee was not paid in time ( you had to pay the court filing fee) or if you only filed the original form and did not include the amendment pages ( they can be filed after the first filing but have to be filed within so many days)

But in general even if you left off one lender, had some wrong figures on the forms, the court merely allows you to admend your filing.
Something just seems wrong, why was it dismissed, exactly what happened.